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Arkansas Solons Answer Charge in Oaklawn Suit Reasons for Voiding Premature Franchise Renewal Are Given HOT SPRINGS, Ark., June 2.— The Arkansas State Racing Commission charged today that the only purpose of the "premature" franchise renewal granted Oaklawn Jockey Club for operation of a horse race track in Hot Springs was to prevent it and the administration from carrying out their lawful functions. The charge was made in answer to a suit filed by Oaklawn in Pulaski Chancery Court, Little Rock, in an attempt to have the disputed franchise declared valid. The commission said the action of a former commission in extending the racing permit for 10 years was "void and of no effect" and asked the court to cancel it. Oaklawn has operated the only race track in Arkansas since racing was legalized in 1935. In April. 1954, before last years heated political campaigns had taken shape, the racing commission which former Governor Francis Cherry had appointed granted the club a new 10 -year franchise. The franchise became effective May 14, 1954, when, the old franchise expired. On advice of the attorney generals office, the present commission — appointed by Gov. Orval Faubus who defeated Cherry for re-election — disregarded the 1954 franchise and advertised for bids for a new franchise. Chief Assistant Atty. Gen. Kay Matthews held that the former commission had no authority to grant a franchise before the then effective franchise had expired. • Declaring its 1954 franchise was legal, Oaklawn asked for an injunction against opening of bids or granting off another franchise. Chancellor Guy E. Williams granted a temporary restraining order. Hearing on an injunction is set for June 13. It was this suit for an injunction to which the present racing commission today filed its formal answer. The pleading was prepared by Matthews. The answer asked/ for dismissal of the injunction suit and nullification of the 1954 franchise. That would leave the way clear for the commission to go ahead with opening of bids and granting of a new franchise. Oaklawn and two other groups -one from Hot Springs and another represented by a Kansas City lawyer — submitted sealed bids in response to the present commissions invitation. The bids have been locked up pending disposition of the current litigation. It is probable that one or both groups competing with Oaklawn for the new f ran chise will intervene in the lawsuit.
